Retail Contrarian

Don't Quit Before the Payoff

2008-11-12T00:05:00-05:00

After unsubscribing to the Daily Retail Quote newsletter, a (now former) reader commented, "I'm not that impressed with your quotes." When I looked at her history I discovered that she had been a subscriber for three whole days. I don't understand why someone would quit after trying it for only a few days, especially since it doesn't cost a dime to receive it.

I'm equally puzzled when I see businesspeople do the same thing in their stores. A few years ago I was working with a store on increasing their average sale and units per transaction. My agenda for this particular day was to show the staff how to suggest additional products before taking customers to the register to ring up the sale.

One employee was clearly not enthused about this initiative. With her first customer, she asked if he wanted to see anything else. He said, "no thanks." With her second customer she suggested something to him at the counter and of course he said, "no thanks." She asked her third customer on the floor. The customer politely declined since she was in a hurry. The employee came to me and said, "See. It doesn't work."

After a little "coaching" from the owner who reminded her that it really takes very little time and effort to suggest additional products to the customer, she soldiered on. And sure enough, the fourth customer politely declined to look at anything since he was in a hurry. But then her luck turned around and she was successful with her next three customers. She ended up enhancing the purchases (some of you call it add-ons) of over 40% of her customers that day, increased her average sale by over 20%, and almost tripled her UPTs. And to think, she wanted to quit after three customers.

As a friend of mine says, "Don't quit before the payoff happens," especially if it doesn't cost you anything to try.

Shout! - A Little Bit Better Now

2008-11-05T08:35:08-05:00

Welcome to a politics free Weekly Retail Experience.

Remember the Isley Brothers song Shout? One of my favorite parts of that song is near the end when they're singing very quietly:

(Shout) a little bit softer now
(Shout) a little bit softer now
(Shout) a little bit softer now
(Shout) a little bit softer now

Replace the word "softer" with "better" and you have a formula for success.

Some of the best retailers I know have a knack for making things "a little bit better now." Years ago I worked for a manager who had this philosophy. No matter what you did or what you brought to him he would challenge you by asking, "How can you make it better?" Since you knew you'd be asked that you would try to figure out ways to improve whatever the situation was before you went to him. It was a brilliant way to keep making the store and the employees better.

You and your team can do the same thing. No matter what you're doing, ask yourself how you can make it a little bit better now. This applies to displays, customer experiences, signage, employee coaching, and just about anything else.

It's a good thing to do on slower days to engage the staff and improve the store. Look at a section of the store and ask, "How do we make this a little bit better now?" I like the now part because it helps us focus on improvements that have an immediate impact and are usually the least expensive to implement.

On busy days keep asking yourself, "How can I work with this customer a little bit better now?" You'll be amazed by how you'll be able to increase your sales and how much fun you'll have. The best part is that customers start feeling. . . you got it. . . a little bit better now. Then they go tell all of their friends and family about their fabulous experience and the buzz about the store experience gets. . . Hold on now. . . wait a minute. . . .that buzz gets a little bit louder now.

And that makes you wanna throw your hands in the air and SHOUT!

- Doug

Good Days and Bad Days, and Going Half-Mad Days

2008-10-29T09:29:28-04:00

There's a Jimmy Buffet song that goes, "I've had good days and bad days, and going half-mad days." Sure has described October hasn't it?

We've seen record high and low days on Wall Street. The good news is the market ended yesterday with its second largest one-day point gain ever. Yea!

Some of the bad days were the ugly predictions coming out about this holiday shopping season. One retail analyst I have followed for years was quoted as saying, "The worst is yet to come for retailers." Another analyst predicted that the retail industry could lose between 10% and 15% of stores next year. Boo.

And that brings us to the going half-mad part. Between the stock market and all of the press it has been quite the roller coaster ride or, as we say here in Boston, a "wicked" roller coaster ride.

I'm thrilled we finally got some good news, and we'll take the "bad" news with a grain of salt. But instead of going half-mad, let's take a look at a few actions retailers can take to NOT be one of that potential 10% - 15% that doesn't make it.

1. Increase the amount of marketing to your customer list. We've always said it's more productive to market to the customer you know versus the one you don't know, and that's true now more than ever. I would especially focus on the top 100 to 250 customers who offer the most opportunity.

2. Keep your team motivated and focused. The successful retailers I'm seeing right now are those who are keeping the carrot directly in front of their employees. I would run some kind of company or in-store contest or other incentive as often as you can between now and Christmas. I know it's tempting to cut back in this area - but don't.

3. Invest time, energy, and even more dollars in employee training. A lot of companies will cut back in this area; a huge mistake for them and potentially a great opportunity for you. I know I've said it over and over again, the most important thing a specialty retailer must do right now is to maximize every customer opportunity.

Focus the training skills on:

How to engage and sell customers who are "just looking."
How salespeople can create incremental sales and increase the average ticket.
How cashiers can demonstrate and suggest additional products that will enhance the customer's purchase and shopping experience.
Holiday selling for maximum performance.
Anything else that will create sales.

I've been talking with a regional retailer about launching a new training program early next year. In our most recent conversation I was told, "We don't believe we can afford to move forward." My response was, "I don't believe you can afford not to. If you don't keep improving your employees you will lose market share." They said they'd get back to me.

So let me ask, are you taking actions to ensure you have a successful holiday?

Here is a printable copy of this article to use in your store.

A Lesson from the Presidential Debate

2008-10-22T08:12:44-04:00

Although I've always tried to keep politics out of my newsletters, there is a lesson from last week's presidential debate that can help us better engage and sell customers. It's this: Always start with the assumption that your customer doesn't know the details of the product or service you're talking about.

In last Wednesday's debate, John McCain brought up Barack Obama's association with both former Weather Underground member Bill Ayers and the voter registration group ACORN. A lot of his supporters were happy he brought these issues up but Sen. McCain wasn't as effective as he could have been because he never explained who Bill Ayers is or what ACORN does. If you follow politics you already know the details, but the debate is the opportunity to talk to those who might be less informed.

We run the same risk in our stores. If we assume the customer is an informed consumer we may miss an opportunity. This is manifested in salespeople using acronyms that mean nothing to the consumer, not translating features into benefits, not highlighting how to accessorize a particular purchase, and failing to point out competitive advantages of products and the retailer themselves.

But you're also at risk at alienating the customer if you assume they aren't informed but they are. An informed customer might want to know about more obscure features or at the least not be told background information they know.

How to know which customer is which? Ask! Before discussing any products, ask the customer if they've been doing any research or how long they've been considering the product. If they answer "not much" or "I just started" then obviously they're not that informed. If they answer "quite a bit" or "been checking them out on online" then you have a more knowledgeable customer and should discuss the product at a higher level.

Whatever your political affiliation or leaning, the better you know your audience the more likely they are to vote for you and your products by saying, "I'll take it."

Have an awesome week. Remain positive and maximize every single customer opportunity.

One Hundred Percent Team Success

2008-10-15T00:01:00-04:00

“Coming together is a beginning. Keeping together is progress. Working together is success.” - Henry Ford

There's a Jimmy Buffet song that goes, "I've had good days and bad days, and going half-mad days." The last two weeks has been like living that song. Between the stock market and all of the press it has been quite the roller coaster ride or, as we say here in Boston, a "wicked" roller coaster ride.

In these times every sale counts. Nobody can afford to miss a single sale. Given the challenges facing this economy it is vitally important that every staff member gives 100% with every customer. If four employees give 100% and one employee only gives 75%, then the store isn't giving 100% and is less likely to succeed.

With that being said, here are four actions every staff member can take to maximize their opportunities and achieve maximum success:

1. Start your day with a positive attitude. Check any issues or negative thoughts at the door when you arrive at work. You can't give 100% if you're holding on to negative thoughts. Yes, I know it's easier said than done, but if anyone can do it, you can. One tool that can help you and your staff remain positive is our free Daily Retail Quote like the one above. The Daily Retail Quote can be downloaded and posted in your backroom or office 365 days a year. Subscribe to the Daily Retail Quote here.

2. Use each other to maintain a positive atmosphere. If one staff member starts to go negative it's your responsibility to stop them. Most people don't even know they're saying negative things, so they'll appreciate you saying something. If they don't appreciate it, I don't see how they'll be giving their 100% that day.

3. Recognize and reward success among your colleagues. Give that high-five when someone makes a sale. Thank someone for doing the task everyone else hates to do. Compliment your colleague for trying to create a sale even when it didn't work out. The fuel that will power each individual toward achieving 100% comes from both within the employee and the other team members.

4. Call out those who aren't giving 100%. I'm not looking to start problems in your store but if a person isn't giving 100%, address it. Don't get in his/her face or something but don't ignore it, either. Just be upfront and say that, based on your observation, you believe there is more that he/she could be doing. My theory is that if you aren't willing to do this then you're not a true teammate.

Are these things easy? Of course not; that's why there are more losing teams than winners. So let me ask, are you doing everything it takes for your team to achieve success?

Dating and Making the Sale

2008-10-08T00:01:00-04:00

You may not have ever realized it but there are similarities between retail selling and asking someone out on a date.

When I was in high school I worked in a large discount store similar to Target. I had a huge crush on a girl who worked in another department. We shared the same manager so I had the opportunity to work with her from time to time.

For months I tried to gather the courage to ask her out. Finally I did but she didn't say yes. She didn't say no, either. I tried over and over for weeks, with little luck. Then one day when I was talking with her she gave me a look and said, "Are you asking me out?" I said yes and she said yes and I could barely contain myself.

Later that week we went out to dinner and I asked her, "How come you finally said yes this time?" Her answer was, "What do you mean this time?" It seemed that all those times I thought I was asking her out I wasn't being direct enough. I wasn't confident enough to come right out and say, "Would you like to go out on Friday night." I have no idea what I was saying but I was clearly not asking her out.

The same holds true for helping a customer make a purchase in your store. If you aren't direct enough in the questions you ask your customer you're unlikely to get the results you want. Here's a perfect example. A few weeks ago I was at the mall shopping for some new clothes. I tried on pants in four different stores. Every time I came out of the dressing room I was asked a question by a salesperson working in the area.

In Macy's I was asked, "How were they?" "They?" I'm not sure if I was to report back on the other people in the dressing rooms or what, so I avoided answering her.

At Sears I was asked, "Everything okay?" I wasn't sure how she knew I had gotten my underwear stuck in my fly so I avoided answering her.

At Lord & Taylor I was asked, "What do you think?" I hated to admit that I wasn't really thinking, so I avoided answering him.

At Nordstrom's I was asked, "Which pair did you like?" Since that question was specific to what I was doing I told her that I liked two of the three. Then she said, "Great. Do you want to look at some shirts to go with them?" When I said "no, thanks" she said, "Super. I'll ring those up for you right over here."

No beating around the bush or vague questions - and on the flip side no hard close either. Just a direct question about what I liked and the saleswoman's assumption of the sale based on my positive response.

I encourage you to be aware of the questions you ask your customers. The more direct you are and the less you leave open for interpretation, the more likely you are to make a sale. And if you're single, it might even help you to get a date!

By the way, after dinner that night my date and I went to see the horror movie Carrie. When that arm came through the ground at the end of movie, it scared me so much I couldn't stop shaking for at least 10 minutes. As a result, it was our first and last date. Oh well, at least I learned not only how to ask someone out but also to never go to a scary movie on the first date.

The Rewards of Retail

2008-10-01T08:20:13-04:00

As specialty retailers we're in the business of people. Sure, we sell products to people, but ultimately we're in the business of connecting with people to match them up with the right products. When done well we're rewarded with a sale. When done really well we're rewarded with the opportunity to make a difference in someone's life, which inevitably makes a difference in our own lives.

With today being the start of National Breast Cancer Awareness Month I am especially pleased to share this story of some retail employees who made a difference. Below you will find a letter received by Craig and Angela Pettit, owners of a chain of Brighton licensee stores. The customer shares in her own words how the employees in the Temecula, California Brighton store made a difference in her life when she most needed it.

Enjoy. - Doug

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Letter to Brighton Retail

I would like to tell you about some ladies at your store in Temecula, Ca.
I have breast cancer and am having bi-lat mast surgery on Tuesday, September 23rd.

On Sat the 20th, my daughter (30) and Granddaughter (7) and I were out for a beauty day before the surgery. We had our hair done, nails painted and we wanted to get matching necklaces. I want you to understand the state of mind we were in before we entered your store.

My daughter and I had just done my pre-op the day before. <Retailer with name removed> carries the contract for my insurance for the post-op camisoles that have to be worn right after surgery. We had gone there to be fitted and pick them up. It was a terrible experience!! The ladies made me feel embarrassed and for the first time since I had been diagnosed. . . I felt diseased!

So needless to say I was a little shy about being around people right then. When we went into the Temecula store . . . of course, we were asked if we could be helped. We said we were just looking.

As we got to the front of the store we saw the sign for the 2008 Breast Cancer bracelet. My daughter and I were looking at each other and one of the ladies asked if we would like to pre order one because they sell so fast. PJ, my daughter, asked when would they be in and was told Thursday.

One of the ladies then asked if we've been touched by or known anyone who had breast cancer. PJ looked over at me and then told her I was having surgery on Tuesday. I am in a wheelchair and because of what had just happened the day before I had turned myself away from the counter because I didn't want to see them look away from me or have them be embarrassed.

Those wonderful, beautiful, caring ladies stopped what they were doing and surrounded me. They bent down to my level and every one of them touched me, on my arm or shoulders, they let me know they were there. They looked me in the eye and asked questions and told me everything would be ok. We finished our shopping, found just the necklaces we needed and wore them out of the store.

As we were leaving those angels in Brighton told us bye, using our names, and that they would be thinking of us. My daughter and I sat in the car and cried. This time it was tears of joy and relief. It was like we weren't alone. There were women out there who were fighting with us.

I have sent these ladies a Thank You card but I wanted you to know, if you didn't already, that you have amazing women working for you. The only thing I regret is that I didn't get their names but I know God knew who I was talking about when I asked Him to bless them!

Signed,

<name withheld>

I’ll say it again. When done really well we're rewarded with the opportunity to make a difference in someone's life, which inevitably makes a difference in our own lives. Go make a difference!

Verrill Farm - More Than a Farm Stand

2008-09-25T12:01:00-04:00

This is a guest post from DEG Vice-President Carin Casey.

We’re very lucky to live in an area where there are still farms that grow fruits and vegetables to sell locally. There are several good farm stands within just a couple of miles of my house. So why, for the last twelve years or so, have I driven past all of them to shop at Verrill Farm in Concord, Massachusetts? And why am I one of the many people in and around Concord who are so saddened by the news that the VerrillFarm store was destroyed by an electrical fire last Saturday? Nobody was hurt, they’ve got insurance, it’s only a farm stand, kitchen and bakery, for Pete’s sake.

But Verrill Farm isn’t just a farm stand. It’s a place where knowledgeable people will gladly tell their customers about the differences between more varieties of tomatoes than you probably knew existed. They’ll offer recipe suggestions, too. So will the other customers as you strike up conversations over three types of corn or four sorts of eggplant. It’s where small children get excited about trying new foods. What finicky four-year-old can resist a tomato called “Mr. Stripy?” Or a red carrot or a blue potato? Cooking classes for children as well as adults, festivals, hayrides, a kitchen that makes delicious prepared foods and some of the best pie you’ll ever have, Verrrill Farm is much more than just a place to pick up some green beans for dinner.

They’ll get excited about a neat bug, too. Last year a friend and I were shopping at Verrill with our kids. The kids wandered into the greenhouse where their attention was completely (and somewhat loudly) captured by a spider and its beautiful and intricate web. The employee who was watering plants in the greenhouse stopped what she was doing and engaged the girls in conversation about spiders and webs. Then she climbed up, carefully gathered up the spider and held it so the kids could get a close-up look before she brought it outside and let it go. Personally, I’m not sorry I missed the up close and personal spider meeting but it was a memorable moment for the kids. A memorable experience that had nothing to do with making a big sale.

The fire was Saturday. On Monday what was left of the building was being torn down, a sad sight. But New England farmers don’t give up easily. As ruins were being cleared a temporary stand was being set up nearby. Corn and tomatoes are still being harvested. The Verrill family says they will rebuild. A building may have been lost but the building was not what made Verrill Farm special. What’s really important – people who don’t just grow amazing food or bake delicious pies but share with customers their pride and passion in the work that they do – remains. So thanks, Verrill family, for your commitment to reopening and rebuilding. Your customers, this family included, will be there.

Articulating Value and Benefits

2008-09-24T00:01:00-04:00

Two weeks ago we went bike shopping for my oldest daughter. At every specialty bike store I asked what I thought was a simple question. I asked, "What's the reason to pay over twice the price of a bicycle from a big box retailer?"

It seems a simple enough question. As a consumer, I'm looking for the retailer to tell me the value I'll receive if I invest more money in their product. And that's what it is, an investment. All the retailer has to do is articulate the value of his (yes, everyone we spoke to was a "he") product as a benefit to me as compared to the cheaper big box product. By the way, it seems like they need more women in that industry.

I was kind of disappointed when I was told, "That stuff is crap." "You don't want that junk." "Save yourself the headache." "We charge twice as much to work on those things." That last one was almost there.

But nobody ever answered the question. Not a single retailer told me the benefit to investing in their product. They told me their opinions but their opinions didn't tell me anything. Why is it crap? Why is it junk? Why do you charge twice as much to work on them? What kind of headache am I going to get besides figuring out on my own why your bikes are twice the price?

I’m more than happy to invest in a quality product if the salesperson articulates the value and benefits. Here are some of the things they could have told me that would have done just that.

“It's safer. The better quality brakes won't fail when your child needs them most.”

“You won't get a headache from having to constantly fix poorly made parts.”

“Of course you can bring it in to us, but we'll have to charge twice the price because we're unable to salvage the cheaply made parts.”

“The bike will last you much longer and your younger daughter will be able to enjoy it when her sister outgrows it.”

“While this bike costs more now, it's a safer bike and will cost you less to own.” Of course I would add, "And can you really put a cost on your daughter's safety?"

So let me ask, in a situation like this would you and your team offer their opinion or state the value and benefit to the customer?

Preaching About Retail Storytelling

2008-09-17T00:01:00-04:00

My grandfather, Johnny Fleener, was a remarkable preacher. Grandpa Fleener was known all around our Midwestern area as an energetic fire and brimstone preacher. I assure you that nobody fell asleep in the pew when Johnny was in the pulpit. I vividly remember him pounding on that pulpit and scaring the life out of me, and that was 40 years ago.

Like most preachers, Johnny was also a great storyteller. He spoke in such vivid detail about Moses and the parting of the Red Sea that I was sure he must have been there. I'd be thinking to myself, "How old is this man?" And not only that, how was it that he seemed to have been present at every major event in the Bible?

Of course I knew that my grandfather had not actually been present for any of those biblical events but he sure had a way of transporting us there. A master storyteller, Johnny had a way of getting our attention, especially the children who seemed to hang on every word he said.

Johnny Fleener would have made one heck of a retail salesperson. No, he wouldn't have told those tall tales about only one item being left in stock when there is a stack of them in the backroom (he was a preacher, after all) but I'm sure he would tell his customers stories to allow them make a purchase with confidence.

One his methods would have been to tell a potential buyer about a customer who is happy with her purchase. But he wouldn't just say, "I have a customer who loves this widget." He would relate in detail how the customer, using her first name of course, had recently come into the store with a big smile on her face wearing/using the widget. Johnny would probably go into great detail about how excited the customer was with the widget and how she had been recommending it to her family and friends. He would probably even add that the customer was so thrilled with her widget she's probably recommending it to complete strangers. And I'm positive he would be creating another story as he walked the buyer to the register and asked her to come back and tell him how much she loves her widget, too.

Knowing my grandfather, I'm know he would have used storytelling in other ways. He would probably create a new story with the buyer as the key character. I'm positive he would help him picture where and how he would use his widget. This way, the buyer could try out the widget without even leaving the store. I worked with a guy at Bose who was a master at this. Not surprisingly, he sold circles around his colleagues.

I'm sure there are people who doubt the effectiveness of storytelling in retail. I challenge them to try this exercise. Which is more effective in persuading you to try storytelling in retail, someone telling you, "Painting a visual picture of a happy customer is a great way to sell products," or me sharing of the story of my grandfather and how he would have used stories to sell more products?

Seems like a no-brainer to me. Then again, Johnny was my grandfather - so I know the impact of a good storyteller

A Customer Experience List for the Store Staff

2008-09-13T06:53:22-04:00

Here are twenty signs you're focused on delivering a great retail experience.

1. Rather than greet customers who walk into the story you actually meet them at the front. That's what friends are for right?

2. You personally see it as a challenge when a customer says, "I'm just looking."

3. You're bummed when the customer's "just looking" really means leave me alone. You know most people say it as a natural reaction to other store's bad service.

4. People comment how you're always in a good mood. You and I know better, but we'll keep that our little secret.

5. Customers ask for you by name. Even better, you know theirs when they do.

6. Customers will wait for you to come in to buy something even if you're not on individual commission. While you've told them they don't have to wait for you, you've also told them how much you appreciate the gesture. By the way, never dismiss the customer for doing so.

7. Even on the busiest days you pretty much know which customer has been helped and by which employee.

8. When the store is really busy you always work with multiple customers at once. More often than not the customers who didn't know each other end up buying together like friends do.

9. You always assume the customer will be making a purchase, and you're actually taken back a bit when they don't. Of course you would never show that to the customer.

10. Since you get to know your customers so well when they say they'll be back to purchase something you know if that's really the case or not.

11. You're surprised when a customer returns a product you sold since you take such pride in matching customers up with the right product.

12. You know that an apology without some type of action is unlikely to make things better for the customer.

13. You enjoy the challenge of an upset customer. Sure most people on the team would rather chew glass than deal with that customer walking in that looks loaded for bear, but for some strange reason you actually enjoy it.

14. You work with a customer the same way if the president of the company is watching or you're alone on the floor.

15. Some people might think you're really competitive, but really you just love to win every single sales contest. Oh wait, you are competitive.

16. You're happy to jump in and help your colleague make a sale, but you'd never considering interrupting them unless it was an emergency.

17. You welcome feedback from your manager and colleague since you're always out to improve.

18. You're always checking to see how your sales, ADS, and UPTs are compared to your colleagues.

19. Nothing makes you happier than to see your customer happy.

20. Even if you don't do all of these things every single time, you keep striving to do so.

21. You go above and beyond for your customer whenever you can.

As a retailer I appreciate what you do. As a consumer, I love what you do. Thank you.

- Doug & Matt

A Liberal Return Policy That's Worked for Over 60 Years

2008-09-07T16:40:22-04:00

Over the summer one of my favorite shopping experiences was at The Vermont Country Store in Weston, Vermont. The Vermont Country Store describes themselves as purveyors of the practical and hard-to-find. I found it to be a fun, hands-on and engaging store with something different at every turn. If you've ever read their catalogue you know what I mean. Where else would you find customers with maple butter, a rubber Mr. Bill doll, beautiful placemats, a corn slitter, penny candy and an old-fashioned flannel nightshirt all in one shopping basket?

But what stood out even more was The Vermont Country Store's 100% customer satisfaction guarantee. If for any reason a customer is dissatisfied, they will exchange the product or refund the money with no hassles or fuss. It doesn't matter how long ago the product was purchased or even the condition of the product itself. If the customer is unhappy, they'll fix it. As they say on their website, this is the way they've been doing business since 1946!

When I talk to retailers about leveraging a more liberal return and exchange policy they often tell me they can't afford to do so. I suspect that if a liberal return policy wasn't profitable The Vermont Country Store wouldn't have done it for the last 62 years.

As specialty retailers, we are in the business of customers. To be successful we need to ensure that our policies, procedures, and most of all our people meet and exceed our customer's expectations. When we do that we are rewarded with a lifetime of business.

When we fall short of those expectations we may still get a transaction or two from that shopper, but they're not our customers. The difference between the two makes a huge difference to the bottom line.

So let me ask, are your policies, procedures, and people customer focused? If not, what changes do you need to make in order to make them so?

And thanks to the Vermont Country Store for a great experience and proving that a liberal return policy is smart business.

The Dirt on Selling in Retail

2008-09-03T09:14:02-04:00

Yesterday I was doing some work around the house when I heard a commotion coming from the front yard. When I walked out to investigate I saw that my daughters, along with a neighborhood friend, had set-up what appeared to be a lemonade stand.

As I watched from a distance I was impressed by how well they were able to persuade people driving or walking by to stop and make a purchase. At one point I saw several customers clustered around their stand. It wasn't a particularly hot day so I wondered what could be the secret to their success.

When I approached I didn't see the usual pitcher and cups so I figured they must have sold everything. Here's how our conversation unspoiled.

Me: "Hey guys, how are the lemonade sales?"

Kate: "What lemonade?"

Me: "I saw you making sales from the stand so I figured you were selling lemonade."

Jane: "Nope. We're not selling lemonade. We're selling potting soil."

Me: "Dirt? You're selling dirt?"

Theo: "Actually, we took dirt and sifted it until the rocks and twigs were all gone. Now it's potting soil. We have two different sizes."

Me: "How much dirt can you actually sell?"

Kate: "Six dollars so far. It's more than we ever made selling lemonade."

Me: "They're selling dirt. Holy cow, they're selling dirt" mumbled under my breath as I walked away.

Here's the dirt (pun intended) on what the kids did that made them successful and what we can all do to sell more products:

1. They approached and engaged every possible customer. Not a single person drove, walked, or biked by without being approached by the kids. Actually, they yelled pretty loudly as people went by but when you're selling dirt you have to work extra hard. You can be sure they never asked passersby if they needed help or if they had any questions. Like any sales, retail selling is a numbers game. The more people you approach and engage, the more sales you make.

2. They sold with passion and enthusiasm. Let's be real. When you're standing at the end of your driveway selling dirt you won't make many sales if you're not passionate and enthusiastic about your product. Obviously, a lot of their customers bought the dirt to be nice, but these kids did beat their lemonade number. I've said it before; passion and enthusiasm create more sales than any other skill or competency.

3. They followed the Butcher Rule. Long time readers know that the Butcher Rule is to always offer your best product first. So while the kids only had one type of "potting soil," they always tried to sell the gallon size bag before offering the quart size. This of course made perfect sense since their cost of sale was zero. (They were my bags.) They know what successful salespeople do; it's easier and far more successful to sell down than to sell up.

4. They differentiated their product offer from their competitors. I'm pretty sure they were the only kids in our town who spent time on Sunday selling dirt. They could be the only kids in the United States who spent time on Sunday selling dirt. I'm sure there were a lot more lemonade stands yesterday than dirt sellers. I actually think that people bought the dirt because it was so different. Who can turn down kids selling dirt?

Retail is more complicated than just child's play but yesterday I was reminded again that strong execution of the basics creates sales. Even if you're only selling dirt.

Don't Assume You Know What the Customer Wants

2008-09-02T14:03:48-04:00

Last week I got a one-word inquiry from my website. It read, "Help!" That's it. Just "help" and the person's name, email, and phone number in the rest of the form. I figured I should call this person right away since she was in such dire need. I assumed that business must be really bad, so bad that she might be in imminent danger of going under. So I put on my red consultant's cape and gave her call.

When I got the woman on the phone I learned that she was fine. As a matter of fact she's quite profitable. When I asked her about the "Help" message she laughed and said that when she was sending me the form she felt overwhelmed and distilled all of her thoughts and emotions down to a single word. All of my pre-call assumptions were incorrect. During the call I learned that she wanted help on being a stronger manager and leader.

After we spoke I got thinking about how often I assume what people need or what they're thinking before even talking with them. It's just not usually as obvious as this example. I must think I'm Carnac the Magnificent or something. (Those under 35 or so might have to Google that one.)

How about you? How often do you assume you know what your customer needs or what they're thinking? I bet it's more often than you think. I encourage you to listen intently to your customers and employees today to find out what their "Help" really means.

Four Months and Counting

2008-08-27T09:27:29-04:00

Around here on the week of the 25th of August most people are thinking about summer winding down and the kids heading back to school. But I know what you're thinking. . . . it's only four months to Christmas! That may seem far away to most people but we retailers know it will be here before we know it. We'd better be ready.

Here are some of my predictions, thoughts, and tips to prepare for the 2008 holiday season.

1. My 2008 prediction. While most pundits and experts will be predicting holiday shopping season that falls somewhere between soft and disastrous, I'm taking a different route. I'm predicting that (short of some catastrophic event beyond human comprehension) there will be a holiday season. That's right; I'm going out on a limb and predicting that we will indeed have a holiday season in 2008.

Since we know the holiday is coming, why not plan to make it a successful one? Why go into the holiday not planning to succeed? Here's my advice: Look at your 2007 holiday results, review how you're trending over the last eight months, then create a realistic stretch goal. Don't plan low, don't plan unrealistically high, but do plan to be successful.

2. Be very picky about your seasonal hiring. One of the upsides of this "challenging" economy will be the higher number of quality people in the seasonal hiring pool. People who either would not have considered a second job or are re-entering the workforce will be looking for a holiday opportunity. You might as well be the person to give it to them - if they have the makings of great employees.

Don't settle for a run-of-the-mill carbon-based life form when you can hire people who will help you achieve your planned success. And don't be afraid of hiring highly-, if not over-, qualified applicants. Some of my best seasonal hires have been pharmaceutical salespeople, bankers, and college professors. As with every holiday season, be aggressive in seeking out qualified applicants and wrap up your seasonal hires as early as possible.

3. Use this holiday to successfully steal your competitor's customers. We're calling this year the Beg, Borrow, or Steal Holiday Season. Retailers without unique products, enticing store events, or a differentiated store experience engaging events will Beg for shoppers to no avail. There are too many options available to consumers for them to settle for shopping in boring me-too stores. Those are the retailers likely to lose their own customers this holiday season.

Other retailers will successfully Borrow their competitor's customers by advertising rock-bottom low prices. While this may create a short-term sales bump, unless the retailer can profit from this approach the benefit will be extremely short-lived. January and February could be littered with broken-down retailers who tried to Borrow their way through the holidays.

The most successful retailers will use the 2008 holiday season to Steal their competitor's customers. Attracting customers through a blend of unique products, compelling events, and aggressive pricing all delivered via a memorable experience will result in new loyal customers with a future revenue stream. At the same time, these retailers will be able to retail their own customers against the aggressive discounters and e-tailers.

4. Last but not least, now is the time to plan how you will capture every single store visitor's contact information. Prepare now for drawings, giveaways, and birthday clubs - whatever it takes to get that store visitor to tell you his name and how to contact him again. Every contact is a potential future sale. Use your success this holiday season to create a successful 2009.

Ho, Ho, Ho, four months and counting. Are you getting ready to succeed?

Win Retail Gold Like Michael Phelps

2008-08-22T11:34:55-04:00

This article ran in my Daily Retail Experience newsletter on 8/13 and I thought I should share it as the Olympics are winding down. You can learn more about the Daily newsletter at the bottom of this post.

How can you not be in awe of Michael Phelps? He now has the record for winning the most gold medals in a single Olympics and the most career gold medals than any other athlete. This guy is awesome.

I sat at my desk this morning thinking about how I could become the Michael Phelps of retail. At first I thought it must be the Speedos, but heaven knows the sight of me in a Speedo would not be a good thing. Those of you who are having me speak at their events in the next few months can feel very grateful I came to that conclusion.

What is it that makes him the Superman of swimming and what can we mere mortals learn from him? From watching the Olympics and from everything I've read, I've identified a few things we can learn from Michael to help us bring home our own gold.

1. Let your competition motivate you. Michael Phelps doesn't worry about what his competitors do or say; he uses it to motivate him to achieve his goals. When a competitor knocks or doubts him he cuts out the article and posts it in the back of his locker. He doesn't whine, complain, or try to one-up his competitors; he just goes out and beats them.

The same holds true for successful retailers. They watch and listen to their competitors and then go out and try to beat them at their own game. On the other end of the spectrum, retailers who are struggling inevitably are the ones to moan and complain about their competition. One thing I've learned in life is that moaning and complaining never get me anything. It's action that delivers results.

2. Train to win. Did you see the interview with Michael Phelps' mother where she said his coach came to her when Michael was 11 and said it was time to start preparing for the Olympics? She laughed at the idea but the coach was serious. He saw the champion in Michael. From that day forward Michael started serious training. Today he eats, sleeps, and trains.

I'm not saying you should only eat, sleep and work, although I'm sure some of you already do just that. We need to have a good work/life balance. But while you're at work, train to win.

I used to see training as a deliverable, something that once I read or gave to employees I could walk away from. I now know that training is an activity. It might involve reading something but it also means working with people to improve both their skills and mine. I guarantee that if you dedicate time every single day to training, and I mean every day just like Olympians do, you and your staff will improve and achieve your goals.

3. Stay focused. Phelps lets absolutely nothing get in the way of his goal. His goal coming into these Olympics is to win the most gold medals of all time (check) and the most in a single Olympics. He knows what he wants and that's what he plans to do. He's so focused that he skipped the opening ceremonies at both Athens and Beijing because they were too close to his first event. Makes me wonder how many of his competitors were at the opening ceremonies that night.

While everyone around Michael talks about the big picture, he must compartmentalize. U.S. national team coach Mark Schubert said it well, "Michael really does a wonderful job at taking one day at a time and attacking whatever's in front of him for that day."

What's your goal for today? Not just your sales goal, which you need to have, but what are you going to attack today that puts you one step closer to achieving your overall goal? Don't let the petty distractions and flare-ups that always happen get in the way of achieving your goal, or if you will, your gold.

Have an Olympian kind of day!

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The Daily Retail Experience is the only subscription retail development newsletter published on a daily basis. Subscribers include store owners, retail executives, managers, sales associates, and support staff of retailers from 1 - 500+ stores. The Daily is published every morning Monday through Friday.

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You can sign-up here for a 14-day trial.

Features and Emotional Benefits

2008-08-20T10:34:40-04:00

One of the first things we learn in specialty retail is to demonstrate or point out a product's feature to a customer and then translate that feature into a benefit.

That concept was pounded into me at my first Sharper Image new store training. Features - benefits. Features - benefits. As part of the training we were given a random product and had to be able to rattle off at least three features and benefits. Let me tell you, that's easier with some products than with others! Especially when you can't include, "the company is making a huge margin and me a big spiff." But I digress.

While I've always fundamentally agreed that successful retail selling includes features and benefits, I also knew that something was missing in that approach. This becomes even more evident when you apply the features and benefits approach to non-demonstrable products.

Salesperson showing clothesWhat's missing is the emotional benefit to the customer. An emotional benefit is the positive impact a product, or at least purchasing a product, has on a customer's feelings. The emotional benefit can be joy, happiness or hope. It can be something that helps the customer overcome sadness, fear, or worry. It can also instill confidence or make the customer feel sexy and attractive. The list is as long as people's emotions.

Most of our purchases are emotional purchases. Anybody who doesn't agree obviously doesn't buy ice cream when they they're feeling down or fine wine when they're feeling good. Or maybe it's the other way around. Either way, almost everything we buy is as much based on a feeling as it is a rational decision.

This is especially true with non-demonstrable products. A customer doesn't usually decide to buy a beautiful necklace because of the clasp. She buys a beautiful necklace because of how that necklace makes her feel. Most of the time, the emotional decision to buy is a subconscious thought not easily recognized by the customer.

There are two ways to communicate emotional benefits to a customer. The first is to translate a tangible benefit to an emotional benefit. This works well especially well with demonstrable products. Good salespeople already add the emotional benefit to the tangible benefit but the more you can articulate it separately the more likely it is to connect with the customer.

Here's an example using a cellphone.

Feature: "This phone's atomic battery last three times longer than similar phones."

Tangible Benefit: "What that means is you can go up to two weeks between charges."

Emotional Benefit: "You won't have to worry about not having enough battery for your daughter to reach you at the end of the day."

The other way to communicate emotional benefits is to use them instead of the tangible benefit. Again I think a lot of people do this naturally but may feel they aren't properly selling with features and benefits. They are; they're using emotional benefits.

Here's an example using a pair of earrings.

Feature: "These retro-style earrings are absolutely beautiful. They will be perfect with the dress you're wearing that day." (The feature is the beauty.)

Emotional Benefit: "You're going to look beautiful on your daughter's wedding day." (Customer will look beautiful is the emotional benefit.)

The more you know about your customer and the deeper the relationship you build, the easier you'll find it to communicate emotional benefits to your customer.

I encourage you to roleplay with your colleagues today on using emotional benefits. Afterwards, try to communicate at least one emotional benefit with every customer. As a result, you'll probably make more sales. Then you'll get to realize an emotional benefit as well - the joy of making more money.

More Realistic Roleplaying

2008-08-18T11:21:20-04:00

I've often equated roleplaying on the sales floor with flossing. You know that it's good for you and you should do it more often than you do. One of the biggest challenges with roleplaying is that it isn't very realistic. One way to make roleplaying more realistic and interesting for your staff is to create a series of customer profile cards.

Write down on an index card the following information:

Customer's Name
Sex
Age
What product the customer has previously purchased
Reason for coming in the store. "Just looking" - "Need a gift" - "Need a certain type of product"
What products they might be interested in.

Then have each staff member role-play once every day with a colleague. One person is selling; the other draws a customer card and uses that profile for the roleplay exercise.

I believe if everyone on the staff role-plays daily that a store can't help but improve sales. And don't forget to floss too.

Experiences and the Positive Impact of One

2008-08-13T00:05:00-04:00

Here's a story that I think you'll appreciate. The other morning I dashed into my local grocery store to pick up a few items. While waiting in line I couldn't help but notice that the woman bagging the groceries wasn't doing her job as quickly as I wanted her to and (in my opinion) was perhaps a bit too talkative.

My incipient annoyance turned to a smile as I watched her work. She was amazing. No she didn't speed up by any means, and as a matter of fact she might even have slowed down. What she did spectacularly well was make a personal connection with every customer.

The customer ahead of me was a paramedic from the firehouse across the street. As she bagged his groceries the cashier talked with him about the dangers of heat stroke. I'm not sure how the topic came up since it wasn't a hot day but she did seem to be passionate about the topic. As he started to leave she smiled and told him to enjoy his steak tips. He smiled back and said, "thank you."

When it was my turn to check out I realized I was looking forward to talking with her. She said hello and immediately picked up on my Black Dog shirt from Martha's Vineyard. She started telling me about the "fabulous trip" she once took to Martha's Vineyard and asked if I liked it. We chatted about Martha's Vineyard and the cereal I was buying. When the transaction was completed she handed me my groceries and with a big smile said thank you and wished me a good day. I walked out the door smiling and thinking about what a good day I was going to have.

I believe this young woman gave some of the best customer service I've had in a long, long time. She greeted me, she engaged me in conversation, she connected me with the products I was buying, she completed her task efficiently, she smiled, she was personable, she said thank you, and I believe she really wanted me to have a good day. How fabulous!

This woman is not a member of management and she never will be. She is, I suspect, as high on the company ladder as she is going to get. She is one of the several developmentally disabled persons employed by this supermarket. I'm sure that because of her disabilities she is probably limited in the types of jobs open to her. Luckily for me, she picked this one.

She reminded me that delivering an outstanding customer experience is the result, first and foremost, of having a genuine interest in the people we meet. If we simply take time to connect one-on-one, for whatever brief time we have with our customer, it will almost always result in a good experience for both the customer and for us.

I believe that woman had a good day as a result of her ability to brighten the day of her customers. I know I did!

So let me ask, how have your days been lately?

Dude, Where's My Customer?

2008-08-11T08:05:19-04:00

There's a very funny quote in the Times Tribune from Howard Davidowitz, chairman of Davidowitz & Associates, a national retail consulting and banking firm. In an article about Boscov's Chapter 11 filing and the chances of them emerging successfully, Mr. Davidowitz said,

“Young people don’t find department stores cool. Every time there’s an obituary, the department stores lose a customer.”

Ouch!

Department stores operating in rough retail environment